From 2% to 6%+: The yield gap driving investors to commercial property

Commercial property is no longer just for seasoned investors – it's fast becoming the go-to strategy for those chasing bigger cash flow and smarter portfolio growth. But getting it right is what sets successful investors apart.

In The Smart Property Investment Show podcast, host Phil Tarrant and Westbridge Funds Management chairman Damian Collins reveal why more investors are making the switch to commercial in 2026 – and how to do it right.

With residential yields tightening to around 2–2.5 per cent, investors are turning to commercial assets delivering over 6 per cent returns, often with tenants covering outgoings, making them a powerful income play.

But the pair warn that higher returns come with higher stakes, and without the right due diligence on tenants, leases, and location, investors risk costly vacancies and poor outcomes.

For those not ready to dive in directly, funds and syndications offer a lower-risk entry point with access to premium assets and professional management.

With industrial properties leading the charge and retail holding strong, the opportunity is clear, but only for investors who approach it with the right strategy, discipline, and understanding. If you like this episode, show your support by rating us or leaving a review on Apple Podcasts and by following Smart Property Investment on social media: Facebook, X (formerly Twitter) and LinkedIn. If you would like to get in touch with our team, email editor@smartpropertyinvestment.com.au for more insights, or hear your voice on the show by recording a question below.